Casual Dining Group has bagged a cash investment of £30m to fund future growth opportunities following a refinancing of the business.
The capital injection has been led by private equity firm KKR, with the support of management and all other shareholders, including funds managed by affiliates of Apollo Global Management, LLC and Pemberton Asset Management.
It will provide a long-term capital structure for the group, strengthen the balance sheet and give CDG extra collateral to grow its core brands Las Iguanas, Café Rouge and Bella Italia.
KKR and Apollo have been investors in CDG since 2015, providing debt and equity funding, and will remain so going forward.
Steve Richards, CEO of Casual Dining Group, said: “We are delighted to have agreed substantial new investment which establishes a strong foundation to continue to invest in our brands and take advantage of opportunities in the sector as they arise. With no external debt and strong funding, this gives Casual Dining Group a very strong financial platform.”
The timing of the deal coincides with a purple patch for the firm. Total sales are up nearly 5% and like-for-like sales 2.3% over the past 14 weeks, which CDG insists puts it ahead of the market.
“We have also seen double digit profit uplift in the period. Our growth initiatives gather pace with delivery, partnership openings and our digital-first approach all driving sales,” added Mr Richards. “We have opened seven new concession sites in airports and hotels since the start of the year with an active schedule of UK owned and international franchise new openings in the pipeline, building on our existing well invested estate.”